International Advisory and Monitoring Board on the Development Fund for Iraq

Press Release
January 14, 2008

Statement by the International Advisory and Monitoring Board on the Development Fund for Iraq

The International Advisory and Monitoring Board (IAMB) of the Development Fund for Iraq (DFI) met in Washington, D.C. on January 8, 2008 and issued the following statement:

“The IAMB met to continue its oversight role over the use of resources of the DFI, which is the principal repository for Iraq's oil-export receipts, and continued to oversee audits of the DFI in line with its extended mandate under UN Security Council Resolution 1790.

“The Representative of the Government of Iraq reported on actions taken by the government to follow up on outstanding audit recommendations.

“The IAMB’s mandate under UN Security Council Resolution 1723 was due to expire on December 31, 2007. The UN Security Council Resolution 1790 dated December 18, 2007 extended the IAMB mandate through December 2008, subject to review by the Government of Iraq by June 15, 2008. The UN Security Council recognized the significant role of the IAMB in helping the Government of Iraq to ensure that Iraq’s resources are being used transparently and equitably for the benefit of the people of Iraq. A competent, independent body, the Committee of Financial Experts, has been established by the Iraqi government, eventually to succeed the IAMB. The IAMB and the Committee of Financial Experts (COFE) will work closely together during 2008 and fully coordinate their work, with the IAMB placing increasing reliance upon the work of COFE while discharging its responsibilities under the UN Security Council Resolution.

“At its earlier meeting in November 2007 in Paris, the IAMB had reviewed an interim audit report for the period from January 1, 2007 to June 30, 2007 by Ernst & Young. While the situation is improving the report continues to highlight continuing weaknesses in the Iraqi system of financial internal controls. A summary of the results of the Ernst & Young interim review is available on the IAMB website (www.iamb.info). Going forward, the IAMB will coordinate with COFE to review the 2007 audit and the arrangements for the 2008 audit, including an interim audit to June 30, 2008.